Chrysler posts $436M profit in 2Q
Monday, July 30, 2012
DETROIT (AP) — Chrysler’s almost total reliance on North America used to be a huge weakness, one that sent the company into bankruptcy protection.
Now it’s a major strength. The region is generating profits for the company while losses in Europe and slowing sales in South America and China are drains on other carmakers.
Chrysler, which sells almost 90 percent of its cars and trucks in the U.S. and Canada, made a $436 million profit in the second quarter. It was a huge turnaround from a year earlier, when the company lost $370 million, mainly because it refinanced government loans.
The automaker, now majority owned by Italy’s Fiat SpA, also backed an earlier profit forecast of about $1.5 billion for the year.
Chrysler has emerged from bankruptcy with far lower costs, and it’s saved money by using Fiat parts and expertise to engineer new models. It has rolled out a revamped Jeep Grand Cherokee as minivan and pickup sales rise.